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119-hr-2912119th CongressWALLET

Oligarch Act of 2025

Sponsored By: Representative Lee, Summer L. [D-PA-12]

Introduced

Summary

Would create an annual wealth tax on the net value of assets owned by very wealthy individuals and certain trusts, with a threshold tied to median household wealth. This bill would also set valuation rules, require new reporting, and expand enforcement and penalty authority.

Show full summary
  • High-net-worth individuals and certain trusts: The tax would apply to an "applicable taxpayer" on the last day of each year and use a threshold equal to 1,000 times the greater of $50,000 or the Treasury's annual median household wealth.
  • Married couples, trusts, and beneficiaries: Married taxpayers are treated as one applicable taxpayer. The bill treats related trusts with substantially the same beneficiaries as a single taxpayer and lets the Treasury issue rules for attributing trust assets and beneficiaries' shares.
  • Reporters and enforcers: Banks, custodians, and other owners or managers may face new information-reporting duties. The Treasury must audit at least 30% of liable taxpayers annually and the bill raises penalties for valuation understating with a $5,000 penalty floor.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 5 costs, 1 mixed.

Delay wealth tax up to five years

If enacted, you could ask to delay paying the wealth tax for up to 5 years. You would need to show severe liquidity problems or that paying now would cause undue hardship to an ongoing business. The Secretary would set application rules within 12 months.

New annual wealth tax on ultra-wealthy

If enacted, this would charge an annual tax on net assets as of December 31. The threshold would be 1,000 times the larger of $50,000 or the median household wealth set by the Secretary. Rates would be 2% from the threshold to 10×, 4% to 100×, 6% to 1,000×, and 8% above that. Trusts (other than qualifying retirement trusts) would pay 8% on amounts over the threshold. Married spouses would be treated as one taxpayer.

Wealth tax not income-tax deductible

If enacted, amounts you pay under the wealth tax could not be deducted from your income taxes. This would raise the after‑tax cost for those who owe the wealth tax.

What counts as taxable wealth

If enacted, your taxable net value would be your total property minus debts, with some items excluded. Property in your estate and some gifts to family under 18 could still count as yours for this tax. Nonresident aliens would be taxed only on property in the United States. Small personal items worth $50,000 or less would be excluded if not used for business or investment and not collectibles, boats, aircraft, mobile homes, trailers, vehicles, antiques, or similar appreciating items. The Secretary would set the median household wealth each year, which is used to compute the threshold.

Nonprofits exempt from the wealth tax

If enacted, tax‑exempt organizations would also be exempt from the new wealth tax. Qualifying nonprofits would not owe this tax.

Penalties for undervaluing your assets

If enacted, a new penalty would apply for large valuation understatements. It would trigger when you claim 65% or less of the correct value. No penalty under this rule would apply unless the underpayment from these errors exceeds $5,000 for the year.

Special timing for death or expatriation

If enacted, for someone who dies and is not married, the tax date would be the date of death. Their year-of-death tax would be reduced by the fraction of days left in the year. That tax would be treated as imposed before death for estate administration. Covered expatriates would have their tax year end the day before expatriation, which could change what is taxed.

New valuation, reporting, and 30% audits

If enacted, the Secretary would set asset valuation methods within 12 months, including for hard-to-value assets. The Secretary would also require reporting of asset and liability information, possibly through banks, companies, owners, or managers, and may tie it to income reporting. Businesses could be required to provide estimates of their own value. At least 30% of taxpayers who owe the wealth tax would be audited each year.

Sponsors & CoSponsors

Sponsor

Lee, Summer L. [D-PA-12]

PA • D

Cosponsors

  • Rep. Nadler, Jerrold [D-NY-12]

    NY • D

    Sponsored 4/14/2025

  • Rep. Tlaib, Rashida [D-MI-12]

    MI • D

    Sponsored 4/14/2025

  • Rep. Frost, Maxwell [D-FL-10]

    FL • D

    Sponsored 4/14/2025

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 4/14/2025

  • Rep. Dean, Madeleine [D-PA-4]

    PA • D

    Sponsored 4/14/2025

  • Rep. Ramirez, Delia C. [D-IL-3]

    IL • D

    Sponsored 4/14/2025

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 4/14/2025

  • Rep. Foushee, Valerie P. [D-NC-4]

    NC • D

    Sponsored 4/14/2025

  • Rep. Watson Coleman, Bonnie [D-NJ-12]

    NJ • D

    Sponsored 4/14/2025

  • Rep. McGovern, James P. [D-MA-2]

    MA • D

    Sponsored 4/24/2025

  • Rep. Casar, Greg [D-TX-35]

    TX • D

    Sponsored 4/24/2025

  • Rep. García, Jesús G. "Chuy" [D-IL-4]

    IL • D

    Sponsored 5/13/2025

Roll Call Votes

No roll call votes available for this bill.

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